The Japanese carmaker Toyota is planning to invest Y150bn ( £1bn) to build new plants in Mexico to target better sales in US and China. The two plants are expected to increase Toyota’s annual production capacity by 300,000 vehicles.
The group last year sold 10.23m cars and trucks Whizzing past their rival Germany’s VW 10.14m.
The world’s largest automaker by sales volume said it would build a $1 billion plant with an annual capacity of 200,000 cars in the central Mexican state of Guanajuato, increasing its overall North American production capacity by about the same number of vehicles.
In China, Toyota said it would spend about 52.5 billion yen ($440 million) to add a new facility and a third line at its factory in Guangzhou, owned jointly with Guangzhou Automobile Group Co Ltd, and could start production in 2017 with capacity to make about 100,000 cars a year.Toyota will produce its Yaris subcompact cars at the Chinese plant in Guangzhou and Toyota Corolla Sedan will be manufactured in Mexico. ” We want to focus on enhancing quality and will ultimately lead in vehicle sales Tetsuo Ogawa, Deputy Chief Executive said in China.